ProSiebenSat.1 Media SE · XETR:PSM
ProSiebenSat.1 Media — Q1 2004 Earnings Presentation
29 slides from ProSiebenSat.1 Media's earnings presentation, May 12, 2004
Slide 1: Company Presentation on Q1 2004 Financials
Company Presentation on Q1 2004 Financials Unterfoehring, 12 May 2004
Slide 2: The German TV advertising market in 2003: further decrease
The German TV advertising market in 2003: further decrease Net TV adspend Change from previous year in percent 12 9.1 6.3 6.8 8 4 0 1998 1999 2000 2001 2002 2003* -4 -5.1 -4.0 -8 -12 -11.5 Source: ZAW,* own estimates 2
Slide 3: ProSiebenSat.1 Media AG: allocation of share capital
ProSiebenSat.1 Media AG: allocation of share capital Allocation of share capital ProSiebenSat.1 Media AG In percent P7S1 Holding Free Float 37.6 37.5 10.2 14.7 Axel Springer AG Kirch Media 3
Slide 4: Higher earnings under tough conditions in 2003
Higher earnings under tough conditions in 2003 § Revenues down 4.6 % to EUR 1.807 billion Profitability up § Consolidated net profit triples to EUR 45 million Optimized § Cost base cut by 11% structures, § Concentration on core business improved cost § Establishment of efficient corporate and manage
Slide 5: ProSiebenSat.1 stations: positive results for entertainment channels in 2003
ProSiebenSat.1 stations: positive results for entertainment channels in 2003 Sat.1 Break-even ahead of schedule ProSieben High profitability at the Group’s most profitable station Kabel 1 Profitable with significantly better earnings N24 Significant improvement in earnings Non TV Non-TV revenues up
Slide 6: Development of ProSiebenSat.1's share price
Development of ProSiebenSat.1’s share price Index January 2, 2003 = 100 300 250 200 150 100 50 Okt. 03 Apr. 03 Apr. 04 Nov. 03 Aug. 03 Jun. 03 Sep. 03 Feb. 03 Feb. 04 Jul. 03 Jan. 03 Jan. 04 Dez. 03 Mrz. 03 Mrz. 04 Mai. 03 ProSiebenSat.1 Mediaset TF1 MDAX Source: Datastream 6
Slide 7: ProSiebenSat.1 Group: key figures for Q1 2004
ProSiebenSat.1 Group: key figures for Q1 2004 Q1 2004 Q1 2003 Change in EUR m in EUR m in EUR m in percent Group Revenues 436.3 411.3 +25.0 +6.1 EBITDA 69.1 0.3 +68.8 -/- Pre-tax profit 43.5 -29.2 +72.7 +249.0 7
Slide 8: ProSiebenSat.1-Group: financial key figures Q1 2004
ProSiebenSat.1-Group: financial key figures Q1 2004 Q1 2004 Q1 2003 Change in EUR m in EUR m in EUR m in percent Group Cost of sales 302.9 337.2 -34.3 -10.2 Selling costs 46.2 55.7 -9.5 -17.1 Administrative expenses 31.8 39.5 -7.7 -19.5 Other operating income Q 5.0 10.5 -5.5 -52.4 Personnel expenses
Slide 9: ProSiebenSat.1 Group: selected key financial figures for Q1 2004
ProSiebenSat.1 Group: selected key financial figures for Q1 2004 Q1 2004 Q1 2003 Change in EUR m in EUR m in EUR m in percent Group Net financial debt 793.6 893.9 -100.3 -11.2 of which: - Bank debt 145.3 330.0 -184.7 -56.0 - Bonds 655.0 652.4 +2.6 +0.4 9
Slide 10: ProSiebenSat.1 Group: stations' earnings for Q1 2004
ProSiebenSat.1 Group: stations’ earnings for Q1 2004 Q1 2004 Q1 2003 Change in EUR m in EUR m in EUR m in percent Sat.1 Revenues 192.7 177.1 +15.6 +8.8 Pre-tax profit/loss 23.7 -13.0 +36.7 285.0 EBITDA 24.7 -9.5 34.2 350.0 ProSieben Revenues 174.5 155.2 +19.3 +12.4 Pre-tax profit/loss 34.8 15.1 +19.
Slide 11: Multimedia und Merchandising: results Q1 2004
Multimedia und Merchandising: results Q1 2004 Q1 2004 Q1 2003 Change in EUR m in EUR m in EUR m in percent SevenOne Intermedia Revenues 13.4 14.0 -0.6 -4.3 Pre-tax profit/loss 2.3 2.3 -/- -/- EBITDA 2.8 2.7 +0.1 +3.7 Merchandising Revenues 12.4 14.0 -1.6 -11.4 Pre-tax profit/loss 2.2 2.6 -0.4 -15.4
Slide 12: Key data for the completed capital increase
Key data for the completed capital increase Number of shares Authorized capital (June 16, 2003) Ordinary shares 48,621,600 Preference shares 48,621,600 Total 97,243,200 Exercised authorized capital Ordinary shares 12,155,400 Preference shares 12,155,400 Total 24,310,800 Subscribed capital Ordinary s
Slide 13: Net financial debt after capital increase
Net financial debt after capital increase Pro forma calculation based on Q1 2004 In EUR m 794 800 700 -35% 600 514 500 400 Before CI After CI Calculation includes fees 13
Slide 14: ProSiebenSat.1 Group: settlement dates after refinancing plan
ProSiebenSat.1 Group: settlement dates after refinancing plan Settlement dates of financial obligations ProSiebenSat.1 Group In EUR m 338 400 320 128 200 200 72 0 Dec 04 Mar 05 Mar 06 2007 2008 Jul 09 2010 May 11 2021 400 475/325* 128 200 150* 200 72 0 Dec 04 Mar 05 Mar 06 2007 2008 Apr/Jul 2010 May
Slide 15: ProSiebenSat.1 Group: audience shares
ProSiebenSat.1 Group: audience shares Ratings ProSiebenSat.1 Group, 14-49 In percent 32 31 30.9 30.7 30.9 30 30.3 29.6 29.3 29.2 29 29.1 29.1 29.0 28.7 28.6 28.7 28.2 28 27.9 27.9 27 Jan Feb Mar April May June July Aug Sep Oct Nov Dec 2004 2003 Source: AGF/GfK-Fernsehforschung; 3-3h 15
Slide 16: ProSiebenSat.1 Group: TV advertising shares
ProSiebenSat.1 Group: TV advertising shares TV advertising shares (gross) ProSiebenSat.1 Group In percent 44.4 44.1 45 43.6 43.6 42.8 43.0 42.9 41.1 40 35 30 25 Jan 04 Feb 04 Mar 04 YTD 2004 ProSiebenSat.1 Group RTL Group RTL 2 Source: Nielsen Media Research 16
Slide 17: Economic development in Germany
Economic development in Germany Real gross domestic product – Germany Change from previous quarter and from previous year, in percent 3 0.2% -0.1% 1.5% 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -1 Actual Actual Projection -2 2002 2003 2004 Source: Federal Statistical Office, Institutes’ Joint Assess
Slide 18: ProSiebenSat.1 Group: goals 2004
ProSiebenSat.1 Group: goals 2004 Improve capitalization Significant improvement in to increase maneuverability earnings in a stable market Market lead in the Market lead in advertising market audience share 18
Slide 19: ProSiebenSat.1 Group: strategic goals
ProSiebenSat.1 Group: strategic goals Leading Free TV company in Germany Further expansion of non-TV revenues Position of the Group in the digital world 19
Slide 20: ProSiebenSat.1 Group: unique TV family
ProSiebenSat.1 Group: unique TV family Sat.1 ProSieben Broad mass-market brand as Lead brand as station for young classic network entertainment Strengthening stations’ brands is a core component of corporate strategy Kabel 1 N24 Classic quality brand Leading brand for information 20
Slide 21: Appendix
Appendix 1 2003 financial figures 2 Shareholder structure following capital increase 21
Slide 22: Advertising crisis: impact on Group's revenue performance
Advertising crisis: impact on Group’s revenue performance ProSiebenSat.1 Group revenues, 2003 vs. 2002 In EUR m -4.6% 2000 1,895 1,807 1800 1600 1400 1200 1000 2002 2003 22
Slide 23: Significant cost cuts throughout the Company
Significant cost cuts throughout the Company ProSiebenSat.1 Group total costs by segment, 2003 vs. 2002 In EUR m -9.4% -5.1% -41.9% -16.7% 1,378 1,249 Total cost cuts: 246 205 EUR 207 m 216 205 (-11%) 62 36 Programming and Personnel expenses Depreciation and Other operating material costs amortizati
Slide 24: EBITDA: best indicator for profitability
EBITDA: best indicator for profitability Development of EBITDA ProSiebenSat.1 Group In EUR m 240 +15.3% 196 200 170 160 120 80 40 0 2002 2003 EBITDA: Earnings before interest, taxes, depreciation, amortization 24
Slide 25: ProSiebenSat.1 Group: financials fiscal year 2003
ProSiebenSat.1 Group: financials fiscal year 2003 2003 2002 Change in EUR m in EUR m in EUR m in percent Group Revenues 1.807 1.895 -88 -5 EBITDA 196 170 26 15 EBIT 158 108 50 46 Pre-tax profit 57 21 36 171 Net profit for the year 45 15 30 200 Net financial debt 676 754 -78 -10 incl. bonds 25
Slide 26: ProSiebenSat.1 Group: profit/loss fiscal year 2003
ProSiebenSat.1 Group: profit/loss fiscal year 2003 2003 2002 Change in EUR m in EUR m in EUR m in percent Sat.1 Revenues 776.3 777.0 -0.7 -0.1 Pre-tax profit/loss 4.7 -97.5 102.3 104.8 EBITDA 38.4 -76.6 115.0 150.1 ProSieben Revenues 686.9 778.2 -91.3 -11.7 Pre-tax profit/loss 135.4 206.4 -71.1 -34.
Slide 27: Multimedia and Merchandising: results fiscal year 2003
Multimedia and Merchandising: results fiscal year 2003 2003 2002 Change in EUR m in EUR m in EUR m in percent SevenOne Intermedia Revenues 59.9 45.6 14.3 31.4 Pre-tax profit/loss 9.9 11.0 -1.1 -10.0 EBITDA 13.6 1.7 11.9 700.0 Merchandising Revenues 67.6 72.9 -5.3 -7.3 Pre-tax profit/loss 13.7 17.2 -
Slide 28: ProSiebenSat.1 Group: EBITDA-Margin grows
ProSiebenSat.1 Group: EBITDA-Margin grows ProSiebenSat.1 Group EBITDA-Margin, 2003 vs. 2002 In percent 12 11 11 +22% 10 9 9 8 7 6 2002 2003 28
Slide 29: Shareholder structure following completion of capital increase in April 2004
Shareholder structure following completion of capital increase in April 2004 ProSiebenSat.1 Media AG n 75.1% Voting Shares n 14.7% Voting Shares n 10.2% Voting Shares n 0.0% Voting Shares n 0.1% Preference Shares n 14.7% Preference Shares n 10.2% Preference Shares n 75.0% Preference Shares n 37.6% o